The California Microbusiness COVID-19 Relief Grant Program (MBCRG) was created in 2021 within the California Office of Small Business Advocate (CalOSBA) to assist qualified microbusinesses that the COVID-19 pandemic has significantly impacted with grants of $2,500 to each eligible Microbusiness that is selected for an award. 

The funding intends to provide relief to the hardest to reach microbusinesses and entrepreneurs that face systemic barriers to access capital. Obstacles include, but are not limited to, businesses owned by women, minorities, veterans, individuals without documentation, individuals with limited proficiency, and business owners located in low wealth and rural communities. 

Round Three Timeline

Application Period: November 14, 2022 5:00 PM - January 31, 2023 5:00 PM
Document Review: February 1, 2023 - February 28, 2023
Notification of Award: March 6, 2023 -March 10, 2023
Grants disbursement: March 13, 2023 - March 24, 2023

For profit businesses which meet the following criteria should apply:

• Self employed workers, independent contractors, sole proprietors, and corporations with no more than 5 employees in 2019 &2020 taxable years. 
• Currently have no more than 5 employees
• Gross Annual Revenue under $50, 000 (as reported for 2019)
• In operation before December 31, 2019 and still in operation in 2022
• Microbusiness was the primary source of revenue for the business owner
• The microbusiness owner is the majority -owner and manager of the qualified microbusiness
• Demonstrated decline in revenue or service demand due to COVID-19 in 2020 or 2021 as compared to 2019.
• The microbusiness owner did not receive a grant under the California Small Business COVID-19 Relief Grant Program (Administered by Lendistry)
• Operating within the County of San Benito

Non profits may apply based on the following:

• Operating within the County of San Benito
• Operating in 2019 with at least $1,000 in revenue
• Still in operation with nonprofit 501(c)(3), 501(c)(6) or 501(c)(19) status and currently registered with the California Secretary of State
• Proof of revenue with a 990 filing and current registration
• Did not receive funding from the California Small Business COVID-19 Relief Grant (Administered by Lendistry)

Businesses which fall under one or more of the following are not eligible to apply:

• Does not operate in the County of San Benito
• Is not located in the County of San Benito
• Received funding from the State of California for COVID-19 Relief (e.g. the California Relief Grant administered by Lendistry)
• Had more than five (5) employees in 2019 (Including the owners)
• Currently has more than five (5) employees (including the owners)
• Gross revenue exceeded $50,000 in 2019
• Is not the owner's primary source of income. 

You will need to gather the following documents to submit with your application:

• Government issued Photo ID (e.g. Drivers License, Passport, Green Card, or even foreign ID issued by a governmental entity)
• Signed IRS Form w-9
• Local Business permit or license 
• Electronic Payment Form & voided check
• 2019 & 2020 Tax Return including schedule C- "Profit and Loss from Business" statement
• If applicable: 990 form filing

Eligible costs are only those costs incurred due to the COVID-19 pandemic as well as the health and safety restrictions such as business interruptions or business closures incurred as a result of the COVID-19 pandemic. the Following are the eligible uses of the grant funds;

• Application for or renewal of, a local permit including but not limited to, a permit to operate as a sidewalk vendor.  
• Investment in working capital - All employees expenses including payroll costs, health care benefits, paid sick, medical, or family leave and insurance premiums
• Payment of Business debt accrued - Working capital and overhead, including rent, utilities mortgage principal and interest payments (excluding mortgage prepayments), and debt obligations (including principal and interest) incurred before march 1, 2020.
• Costs associated with reopening business operations after being fully or partially closed due to state mandated COVID-19 health and safety restriction and business closures
• Costs associated with complying with COVID-19 federal, state, or local guidelines for reopening with required safety protocols, including but not limited to equipment (e.g. vendor cart), plexiglass barriers, outdoor dinning, PPE supplies, testing, and employee training expenses
• Any other COVID-19 related expenses not already covered through grants, forgivable loans, or other relief through federal, state, county or city programs
• Any other COVID-19 related costs which are not one of the ineligible uses of funds.

California Microbusiness COVID-19 Relief Grant Program Q&A

Don't see an answer to your question? email us at microgrant@cosb.us

1. what is the minimum and maximum revenue threshold? Is it based on gross or net revenue? 

a. Businesses must have a minimum of $1,000 in annual gross revenue to qualify. The maximum amount a business may have is $50,000 gross revenue. 

2. Does a microbusiness income include household income such as a spouse's income, or is it limited to the microbusiness only? 

a. The microbusiness owner's primary source of income must be the business. Household income is not included. 

3. Can this grant award Short Term Rentals Business owners as a business entity? 

a. Eligibility will follow the same criteria as the California Small Business COVID-19 Relief Grant Program. Businesses operating as passive income (such as rentals) are not eligible for the program

4. If a microbusiness received a grant from their respective county, can they still apply this state grant? 

a. Past receipt of a county or federal grant program does not disqualify applicants from receiving a grant from MBCRG; however, funds cannot be used to cover the same expenses for the same period that the PPP/EIDL funds covered. Applicants cannot have received a grant from the California Small Business COVID-19 Relief Grant Program

5. Where can I check if I have received a grant from the California Small Business COVID-19 Relief Grant Program?

a. Small Business COVID-19 Relief Grant data can be found at https://business.ca.gov/about/publications/ under the dropdown menu California Small Business COVID-19 Relief Grant Program. Please note that awards are still ongoing, and the data is updated every two weeks. 

6. Are nonprofits eligible for the program? 

a. Yes, nonprofits are eligible if they comply with all eligibility requirements of the program including having made a minimum of $1,000 in gross revenue during the 2019 taxable year.